Ethereum price analysis: ETH/USD moving towards critical $400, but the breakthrough is unlikely as of yet

  • ETH/USD is virtually unchanged on a daily basis.
  • Further downside may be limited by tech levels clustered on approach to $400.

ETH/USD is trading at $418 at the time of writing, virtually unchanged on a daily basis. The second largest coin with a market value registered at $42.7B has an average daily trading volume settled at $1.8B. The price has recovered from Wednesday's low at $407; however, the upside momentum is limited.

The coin has been sliding for six days, effectively capped by 50-DMA (currently at $465). A sustainable movement below $460 (78.6% Fibo retracement level increased the downside pressure and put $400 in focus. However, a confluence of strong technical levels, located on the approach to this handle, may tame the bearish temper and trigger and upside recovery. Once below $400, there is nothing much in terms of support levels until  $353 (2018 low).

On the upside, the chances to get back above $460 any time soon are slim. Lots of technically important levels clustered on approach to $460 are likely to stop the recovery and lock ETH/USD in a narrow range for a period of consolidation.

ETH/USD, the daily chart

BEST BROKERS TO TRADE CRYPTO

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.